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REPRINT FROM THE INTERNATIONAL ASSIGNMENT ADVICE NEWSLETTER
The Association of Certified Fraud Examiners recently circulated the 1996 Report to the Nation on Occupational Fraud and Abuse, the largest privately funded study ever conducted on the subject. Some 2,600 actual fraud cases accounting for $15 billion were analyzed. Some of the findings include:
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Males committed three-fourths of the offenses studied
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Managers and executives were 4 to 16 times more likely to commit fraud than their employees
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The average organization loses $9 per day per employee to occupational fraud and abuse
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Smaller organizations are most vulnerable
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The expansion of computer use within organizations will likely increase these losses
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Relatively few occupational fraud and abuse cases are discovered through routine audits
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The analysts found a direct correlation between the employee’s age, sex, position and the median loss due to fraud and abuse
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An employee hot line is the single most cost-effective measure to detect occupational fraud and abuse.
Among the study’s conclusions; companies should have a written code of ethics, ensure that management provide a model of honesty which employees will emulate, check all employee references, create a positive work environment, have the highest level examine all bank statements, install a hotline, and consult a CFE to detect fraud risks and design preventative programs. Call the AOCFE at 800-245-3321 to order a complete copy of the study for $69.
© Copyright 1996 Alikim Media